China's involvement in the Australian gold mining sector continues to grow, with a flurry of recent deals. In early February, Hanking Australia, a subsidiary of Hong Kong-listed China Hanking Holdings, announced the US$330 million sale of its Southern Cross gold mines to Shandong Tianye Group.

Hanking itself acquired Southern Cross in 2013. Shandong Tianye has already secured Foreign Investment Review Board approval for the transaction

The Southern Cross mine was on care-and-maintenance at the time Hanking Australia acquired it. But production was restarted in late 2015 after a heavy investment programme, and it is now producing 130,000 ounces a year.

Shandong Tianye is a subsidiary of Shanghai-listed Shandong Tyan Home, which is primarily involved in Chinese property development and management.

In August 2016 Shandong Tianye, through its subsidiary Minjar Gold, completed the acquisition of the Pajingo gold mine from Evolution Mining, in a deal valued at US$40 million. The Pajingo mine is located in Queensland, and produces around 65,000 ounces per year.

Minjar also acquired the Kirkalocka gold project in Western Australia in 2015, and also owns the nearby Golden Dragon project. Kirkalocka is currently under care and maintenance, but work is underway on exploring both underground drilling and open pit operations, with a view to restarting production.

Shandong Tyan Home acquired Minjar Gold in 2014, as part of a diversification strategy. Minjar is currently in talks to acquire a 50% stake in Kalgoorlie Consolidated Gold Mines from Canadian mining company Barrick Gold. The Kalgoorlie Super Pit is Australia's biggest gold mine. The proposed US$1 billion deal would need to be cleared by the Foreign Investment Review Board.

Photo courtesy of Hanking Australia.